Facebook Talking to Apple on New Version of ‘Home’ Software

By Jon Erlichman and Brian Womack -
Apr 16, 2013

Facebook Inc. (FB) is talking to Apple
Inc. (AAPL) about crafting a version of its new mobile software for the
iPhone, in a push to boost revenue from the growing number of
users who access the social network on smaller screens.

After debuting the software, called Home, for Google Inc. (GOOG)’s
Android operating system earlier this month, the operator of the
world’s biggest social-networking service is speaking to Apple
and Microsoft Corp. (MSFT) about expanding to other platforms, Adam
Mosseri, director of product at Menlo Park, California-based
Facebook, said in an interview on Bloomberg West yesterday. The
talks are in progress and nothing has been finalized, he said.

Now that the majority of users access Facebook via mobile
devices, Chief Executive Officer Mark Zuckerberg is looking for
ways to keep them engaged longer and coaxing more advertisers to
pay to place promotions. While Google’s Android software powered
about 70 percent of smartphones worldwide last year, Apple’s iOS
system commanded about 21 percent, according to Gartner Inc.

“We’ve shown them what we’ve built and we’re just in an
ongoing conversation,” Mosseri said, referring to discussions
with Apple and Microsoft.

Facebook shares rose 1.5 percent to $26.92 at the close in
New York, leaving the stock little changed this year.

‘Active Dialogue’

Already, Facebook and Apple have a “great relationship,”
Zuckerberg said when he introduced the Home software earlier
this month.

“We are integrated into the operating system with them,”
Zuckerberg said. “We have an active dialogue to do more with
them.”

On iPhone devices, the Home software would be tailored to
what Apple prefers, Mosseri said. It could look much different
than the Android version.

“It may or may not be Home,” he said. “We could also
just bring some of the design values to the iOS app. That might
be how it ends up. Or we could build just the lock screen. Maybe
then it’s not called Home, it’s called something else.”

While the program won’t initially have advertising,
Zuckerberg said promotions will be included in future updates.

“There are no ads on this yet,” Zuckerberg said. “I’m
sure at some point there will be.”

In a separate announcement on its website today, Facebook
said it’s adding one of the features of Home to its stand-alone
applications for Apple’s iPhone and iPad. The company will
enable so-called chat heads, which show pop-up photos of a
user’s friends when they send a message.